HOW-TO FIX http://bugs.python.org/setuptools/issue64
http://bugs.python.org/setuptools/issue64

1. Find out where setuptools lives using Python prompt :
   I'm using virtualenv, so my site-packages are located in my home
>>> import setuptools
>>> setuptools
<module 'setuptools' from '/home/kcleong/bin/default/lib/python2.4/site-packages/setuptools-0.6c9-py2.4.egg/setuptools/__init__.pyc'>

2. Change directory to root of setuptools egg:
$ cd /home/kcleong/bin/default/lib/python2.4/site-packages/setuptools-0.6c9-py2.4.egg/

3. Download and apply patch
$ wget http://bugs.python.org/setuptools/file55/svn_versioning_4.patch
$ patch -p0 < svn_versioning_4.patch

4. Voila, setuptools now recognises the svn revision in .entries